Liberal GST Rebate for Holidays Faces Mixed Reactions as Parliament Passes Relief Package​

Last night, the Canadian House of Commons passed a measure that will provide relief for Canadians during the holiday season, despite facing strong opposition from the Conservatives and the Bloc Québécois. The legislation, supported by the NDP, includes a temporary GST rebate and a direct payment to eligible Canadians. The Liberal government had proposed this plan to address the growing financial strain many Canadians are facing amid ongoing inflation, with the hope of providing some relief as the holiday season approaches.

The GST exemption will begin on December 14, 2024, and continue through February 15, 2025. It will apply to a select group of items such as children’s clothing, shoes, toys, diapers, restaurant meals, beer and wine, Christmas trees, snack foods, and video game consoles. Additionally, a one-time $250 cheque will be issued to Canadians who earned less than $150,000 in 2023, which will be delivered in the spring of 2025. This will directly benefit approximately 18.7 million Canadians, at a total cost of around $4.7 billion.

While the rebate and direct payment are aimed at helping Canadians weather the high cost of living, the Conservatives and Bloc Québécois have criticized the proposal. Conservative leader Pierre Poilievre dismissed the move, calling it a “tax trick” and stressing that his party’s focus is on eliminating the carbon tax, which he argues has a much larger impact on Canadians’ finances. Bloc Québécois leader Yves-François Blanchet, while agreeing that additional money in people’s pockets is beneficial, labeled the proposal as politically motivated, accusing the Liberals of selective spending based on electoral considerations.

The NDP, on the other hand, has positioned itself as a key ally to the Liberals, supporting the GST holiday measures in exchange for promising to push for even more expansive relief in the future. NDP leader Jagmeet Singh emphasized that while his party would have preferred a more comprehensive solution, the rebate and the temporary GST break would still provide immediate assistance to those struggling to make ends meet.

This legislation, which costs an estimated $6.3 billion, is being seen as a critical step in the Liberal government’s attempts to address the affordability crisis ahead of the 2025 federal election. However, as public dissatisfaction with the government grows, it remains to be seen whether this will be enough to shift the political momentum, especially with high inflation still a major concern for many Canadians.